10 April 2019
IOOF subsidiary to acquire Bendigo and Adelaide Bank’s
Financial Planning book
IOOF Holdings Ltd (ASX: IFL; OTC: IOOFY) today announced that its subsidiary, Bridges Financial Services Group Pty Ltd (Bridges), has entered into a strategic partnership with Bendigo and Adelaide Bank Ltd (Bendigo), with respect to advice servicing rights of Bendigo Financial Planning Ltd’s (Bendigo FP) clients.
The arrangement will see Bridges take ownership of Bendigo FP’s client book and servicing rights and provide ongoing financial planning services to clients of Bendigo referred to Bridges via an exclusive referral arrangement.
•The transaction is expected to complete on 31 July 2019, subject to satisfaction of customary conditions precedent.
•Bridges has agreed to acquire Bendigo FP’s client book and servicing rights for cash consideration of $3 million on completion, plus a further payment payable on the first anniversary of completion, subject to maintaining an agreed ongoing service client retention rate.
•Bridges and Bendigo have also entered into a Referral and Relationship Agreement which will see Bridges provide financial planning services to clients referred by Bendigo for an exclusive period.
•As part of this agreement, Bendigo will refer Bridges’ financial planning services via its branch network.
•Increase in scale – Bendigo FP advisers will add approximately $1 billion of funds under advice.
•While Bridges has found no material issues with respect to Bendigo FP during the due diligence process, Bendigo has provided indemnities in favour of Bridges and IOOF in relation to any liability that may arise from Bendigo’s conduct of its financial planning business prior to completion.
Joint Bridges and Bendigo working groups are underway to plan and execute a smooth transition of clients and staff to Bridges.
Bridges CEO, Nathan Stanton commented, “At Bridges, we put clients at the centre of everything we do. In partnering with
IOOF Acting CEO, Renato Mota said, “This partnership demonstrates how our diversified service capabilities continue to be attractive to advice groups looking to join a genuinely
About Bridges Financial Services
Established in 1985, Bridges, a subsidiary of the IOOF group, has grown to become one of Australia’s largest national financial planning and stockbroking organisations and the preferred partner for the
About IOOF Holdings Ltd
IOOF has been helping Australians secure their financial future since 1846. During that time, we have grown substantially to become one of the largest groups in the financial services industry.
IOOF provides advisers and their clients with the following services:
•Financial Advice services via our extensive network of financial advisers and stockbrokers.
•Portfolio Management and Administration for advisers, their clients and hundreds of employers in Australia.
•Investment Management products that are designed to suit any investor’s needs.
Further information about IOOF can be found at www.ioof.com.au